The Key to Successful Loan Modifications – Loan Modification Advice

As the Obama Administration’s Home Affordable Modification Program (HAMP) approaches its sixth month, the challenges facing the plan are becoming more clearly defined while solutions to those challenges remain a work in progress. Admittedly off to a slow start, the program has about 200,000 loan modifications in its trial phase, according to Treasury officials. The trial phase of a loan modification is three month period where homeowners are granted lower payments while terms on the existing mortgage are modified. With 1.5 million foreclosure filings in the first half of the year alone the program needs to be ramped up significantly before it can make a material difference in the foreclosure crisis.

At hearings held last week in Washington D.C. last week, the tone was that of frustration and confusion as to why there aren’t more modification getting done. Bred by that frustration, new plans were proposed and the rationale behind the foot dragging by lenders and servicers was hypothesized by industry insiders and analysts. Plans to turn foreclosed homeowners into renters and allowing for homeowners to put their homes back to lenders and demand reductions on their mortgage balances were a couple of ideas advanced by those convinced that the home loan modification plan that HAMP is based on has failed. Both plans still needed work to fill the gaping holes in logic behind them, as admitted by the designers of those plans.

Others, including economists at the Federal Reserve Bank of Boston, postulated theories on why banks are not embracing loan modifications whole heartedly. The Boston Fed’s new research suggests that the loan-modification effort may also be based on faulty economic assumptions. Their study basically refutes the idea of “everybody wins” loan modifications, based on the opinion that the process underestimates two of lenders’ strongest incentives to decide against modification. The first incentive is that, according to statistics, about a third of struggling homeowners “self heal” by finding new employment or by making other financial adjustments like selling other assets. Since lenders have no idea which third of their portfolio is going to self heal they are willing to sit back and let situations play out instead of modifying the loan. The second disincentive is the high re-default rate on loan modifications. Again, according to the Boston Fed, banks are now looking at the historically high failure rates on modifications and deciding that they’re not worth the trouble. The summary of the Boston Fed economists is that, “the number of ‘preventable foreclosures’ may be far fewer than many believe.”

The problem with the theories proposed by the Boston Fed is that each disincentive carries a critical flaw; in the case of self healing homeowners, the flaw is that they’re using historical statistics that are based on a relatively healthy economy. Under normal circumstances, a homeowner may lose employment for a few months, fall behind on the mortgage, get re-hired, and then catch up on the missed payments. The odds for that kind of situation playing out in today’s economy are much lower with the national unemployment rate approaching 10% and certain states, like California, seeing jobless rates at 12%. Decreases in the average hourly work week are making it tougher on those that are employed as well. Executing loan modifications which lower payments in these situations still makes sense for the lender, especially if the modification is tailored to the needs of the homeowner.

The second flawed piece of their theory is based on high default rates on modifications executed in 2008. As a relatively new practice at that time, a high percentage of modifications didn’t lower payments at all and, in the case of negative amortization loans, actually raised them. Without payment reductions, it’s not a surprise at all that homeowners fell behind again after getting modifications that didn’t address the cause of the problem; mortgage payments that were too high relative to the homeowners’ income.

Contrary to the opinion of the Boston Fed and those looking for alternatives to loan modifications, there are loan modifications that are working and that can provide an “everyone wins” outcome, or at an least an outcome that inflicts the least amount of damage possible to all parties involved. The mortgage loan modifications which are working involve two changes; the first is a mortgage payment lowered by at least twenty percent. The second is a principle reduction on the mortgage balance, a relatively rare occurrence so far but one that is gradually proving out, especially when compared to foreclosure on the property. While lowering the interest rates is now considered a “given” for a successful modification, principle reductions are now been seen as the key to successful modifications. With foreclosure sales bogged down with both over supply and limited demand, bids at auction are now coming in between 30 and 60% of the mortgage balances for the small percentage of homes that actually attract buyers. Weighed against a 40 to 70% haircut and a one in fifty chance that the home will sell, cutting a principle balance by 20 to 30% looks like a big win. The servicer continues to charges fees off (smaller) payment collections and the homeowner has a home that is once again affordable. With an economy that is redefining what a win looks like, making or losing less money might just feel like a big victory when compared to the alternatives.

According to Steve Feldman, Senior Partner and loan modification attorney at The Feldman Law Center, “We are beginning to see a more receptive environment for principle reductions as lenders see statistics showing the success of loan modifications that include them.” He added, “The loan modifications for our homeowners that reduce principle balances give them a lot of confidence about staying in their homes, regardless of the current hardship they might be facing.”
There are some big issues that must be overcome so that loan modifications can play the role that the administration intends for them. Some are directly related to the process of getting a loan modification through the approval process such as hiring and training of staff and building the infrastructure to process reams of paperwork. The biggest obstacle at the moment, however, is an economy in recession which will trump even the noblest efforts in loan modifications by continuing to subtract jobs from the economy. A new focus on jump starting the economy with wide spread use of a proven mortgage loan modification formula could be exactly what everyone is looking for; a solution to the foreclosure crisis.

Feldman Law Center – Loan Modification Company – Visit www.feldmanlawcenter.com for more information.

Saxon Mortgage Services in the Crosshairs

Feldman Law Center: According to an April Credit Suisse Group analysis of the home loan modification performance by mortgage servicers, the winner is Litton Loan Servicing, a Goldman Sachs Group Inc. unit, while the worst of the group was Saxon Mortgage Services, a division of Morgan Stanley. According to the study, Litton modified 28% of the mortgages it oversees that originated between 2005 and 2007. Saxon modified less than a quarter of Litton’s number at 6%.
These loan servicers are the focus of the Obama Administration’s frustration due to the slow rollout of the Home Affordable Modification Program (HAMP) since its initiation in March. Adding to that frustration is that the slow rollout of loan modifications under HAMP guidelines has occurred while foreclosures continue to increase at a record breaking pace. Estimated to hit 2.4 million by yearend just two months ago, foreclosure estimates for the year are now being raised to 3.5 million due to increased activity in the second quarter. Foreclosures exceeded 300,000 for each month of the quarter. The second quarter statistics have spurred administration officials to summon high ranking representatives from the servicers to Washington D.C. for a meeting with Treasury Secretary Tim Geithner and Shaun Donovan, Secretary of HUD, in late July to see what can be done to ramp up the pace of loan modifications across the country.

When the Center for Responsible Lending, a financial-services research and policy firm, was estimating 2.4 million foreclosures for the year, their estimate on the number of surrounding homes which would be affected by foreclosures and resulting price decreases stood at 69.5 million. Their very conservative estimate put the loss per home at $7,200 which would translate to a drop of over half a trillion dollars in property values across the country. With new estimates of 3.5 million foreclosures for the year and the likelihood that foreclosures will be increasing for higher end properties, the numbers from the Center for Responsible Lending look wildly optimistic.
The government effort to stem this rising tide of foreclosures rests squarely on shoulders of the mortgage servicers but one look at Saxon’s operations confirms that they have a long way to go before they can start processing the influx of applications with anything approaching efficiency. Saxon’s problems started immediately after HAMP was announced as they were flooded with phone calls, requests for information, and paperwork. So much paperwork, in fact, that an internal audit in May determined that their scanning equipment was overloaded with documents sent in by homeowners seeking home loan modifications. The overload resulted in delays, lost documents, and applications.
One of Saxon’s biggest issues is that when it was purchased by Morgan Stanley in 2006, it was servicing approximately 165,000 loans. Instead of hunkering down with a portfolio that was beginning to fall apart, the company had more than doubled the number of loans it serviced by the end of June 2008. Most of the new loans were subprimes from other servicers that were either failing or leaving the business.
Saxon was also caught flat-footed on staffing up for the coming rush of loan modifications. Like other mortgage servicers, the company performed a relatively straightforward set of functions, acting as the direct interface with borrowers on behalf of the insurance companies, pension funds, and Wall Street institutions that owned the mortgages. Those functions included processing payments, maintaining impound accounts, and collecting delinquent payments.

While other companies began gearing toward loan modifications much earlier, Saxon’s energies were being spent on servicing their growing portfolio. Their growing subprime mortgage portfolio was already blowing up in the first half of 2007 when they finally started contemplating loan modifications. It would take another 18 months before the company started adding capacity for mortgage loan modifications. Saxon, late to the game and scrambling to catch up, was immediately buried in applications after the announcement of HAMP by the Treasury and the Administration.

It would take another ten weeks for their internal audit to reveal what everyone already knew; that the company was drowning with inadequate infrastructure and a staff that was untrained, inexperienced, and too small. Since that May audit the company has brought in four outside companies help handle the thousands of calls that pour in daily.
At present, and while still servicing loans that are performing, Saxon and the other servicers are under intense pressure to train a legion of employees in the art of negotiating and executing loan modifications. The problem with the training aspect, as faced by all servicers is that each loan has its own set of circumstances with mortgages owned by different investors with different parameters for judging the merits of each modification. Without an instructional template available, trainees are basically being taught on the fly with a new lesson waiting with each new loan modification that lands in their inbox.

Next up for Saxon is the sure to be unpleasant July 28th meeting with Treasury and HUD officials Washington D.C. One of the issues to be covered will be the publication of each servicer’s results in a form of public shaming to provide additional motivation. The problem with that idea is that Saxon’s mortgage holders already know what’s going at the company. Reading about it on the HUD website isn’t going to make them feel any better about submitting lost documents for the fourth time.

For more information visit www.feldmanlawcenter.com or call 800-588-0425.

Feldman Law Center – Are Lenders Giving Homeowners a Break? by Feldman Law Center

Feldman Law Center – News by Feldman Law Center – California’s recently passed anti-foreclosure bill exempted most lenders in the state from its regulations with loopholes big enough to drive a truck through. Trumpeted by legislators as another layer of protection for homeowners, the bill exempted the largest lenders in the state including Wells Fargo, Bank of America, and JP Morgan Chase because they already had loan modification programs in place. Even for the rare lender that might have been out of compliance with the law, and then subject its regulations, adding a loan modification program would exempt it from the mandated 90 day postponement of foreclosure proceedings on delinquent homeowners.

It was with amazement then that industry watchers marveled at the June foreclosure statistics which showed that foreclosures actually declined even as the state’s default filings increased. Many of the comments made it sound like lenders in California might actually be giving homeowners a break. ForeclosureRadar Chief Executive Sean O’Toole said, “A number of lenders appear to have self-imposed California’s latest foreclosure moratorium on themselves, despite having received an exemption from it.”

The numbers definitely bear out that there could have been more foreclosures and more properties put up for auction in the month of June. An example of lenders’ restraint is Bank of America, which cut their notice of trustee sale filings by 48% from May to June. Seemingly puzzled by the decrease, Mr. O’Toole commented, “… (it’s) an outcome we are struggling to find an explanation for.” One thing for certain is that the ultimate explanation won’t have anything to do with lenders cutting homeowners a break because they feel sorry for them.

It’s much more likely that what is being called a self imposed moratorium is based on the lenders choosing the lesser of two evils and the law of supply and demand. A look at a couple of statistics from the California auctions illustrates what the lenders are dealing with and why there aren’t more properties going to auction:

* Of 22,291 foreclosures taken to auction only 2,687, representing 12% of the total, were sold.

* Opening bids as set by lenders averaged 39.3% lower than the mortgage balance.

* Almost half of the properties sold at auction were discounted by 50% or more.

* Despite the steep discounts and the relatively limited supply, lenders were forced to take back 87% of the properties submitted for auction.

Those are pretty grim stats given that the 22,000 properties that actually went to auction represents less than 20% of the amount that could have been submitted. Putting salt in the wound, the 2,600 properties that did sell were done at steep discounts and represent about 2% of the total of homes that could have been sold. A lender looking at those numbers would have no motivation at all to foreclose save for special situations where there is perceived value or a buyer waiting on the other side.

Under normal circumstances, foreclosures typically run in an orderly three part process starting with the filing of a notice of default (NOD). The property then goes to auction at a trustee sale where it is either sold or taken back by the lender. The current bottleneck is occurring at part three of that process because homes aren’t selling and lenders are already flooded with properties in their REO departments. Continuing to foreclose at a brisk pace only adds to the existing backlog, building a supply that isn’t even close to being met by demand. In that situation the lesser evil is to leave the property in limbo and hope that borrowers can fix their mortgage problem or modify the existing loan.

Leaving properties in limbo also benefits lenders by allowing them to carry properties on their books at a value of their choosing due to Congress’ relaxing of mark to market rules in the spring. A foreclosure sale forces the adjustment of valuation on properties sold at auction so even if properties were selling, it’s unlikely that lenders would be willing to accept massive write-downs at current valuations. In an environment where just about any action a lender can take results in a loss of some sort, moving as slowly as possible might be the only way to minimize damage on a daily basis. It could be that a write-down pace on 2% of the REO portfolio each month is a number that lenders can live with at the moment. Whatever the reason, the break that homeowners are getting right now is subject to change at a moment’s notice.

For more information about loan modification (mortgage loan modification) visit Feldman Law Center at www.feldmanlawcenter.com

About Feldman Law Center:

The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop or avoid foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent.

Having negotiated over 500 attorney driven mortgage loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

The people at The Feldman Law Center completely understand the stress of being behind in your monthly payments and the sleepless nights that can be brought on by an impending foreclosure. Rest assured that we will stand with you all the way through the loan modification process and that we are driven to get the best outcome possible for you and your family. If you are struggling with your monthly payments and worried about the threat of foreclosure, we can help. Call The Feldman Law Center today at 800-588-0425.

Resources:

Feldman Law Center: Profile – Business Exchange

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Loan Modification – Feldman Law Center

Feldman Law Center, Mission Viejo CA 92691

Feldman Law Center – The Cream Rises in Loan Modifications

Feldman Law Center – Ten Tips for a Successful Home Loan Modification

Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination

Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch

Feldman Law Center – The New York Times gets it About Half Right

Feldmanlawcenter.com – Feldman Law Center Company News

Feldman Law Center

Feldman Law Center Trulia Profile

The Labyrinth – Feldman Law Center – Loan Modification Help by Feldman Law Center

Feldman Law Center – News by Feldman Law Center — If homeowners are holding on to one aspect of the Obama Administration’s Homeowner Affordability and Stability Plan, it’s “2%”. Of the multitude of calls that come in to The Feldman Law Center, a majority of them sound something like “How do I qualify for a 2% mortgage?”

The promise of the program, in general, has been muted by its slow uptake by lenders and mortgage servicers and the incredibly slow response time for those that have applied with them for home loan modifications. Some homeowners are waiting months just to hear whether they qualify, while their foreclosure creeps ever closer.
The one issue being proved out is that attorney driven home loan modifications are moving faster and have a much better chance of getting approved. Steve Feldman, Senior Partner at The Feldman Law Center agreed saying, “We took the time to understand the guidelines and we’re familiar with the different protocols at the various lenders, so we’re very comfortable with navigating the process.”

The new program has carried with it the problems of learning the guidelines, integrating systems, and training staff, all of which have slowed the process to a crawl at many of the lenders. Fifteen lenders, in addition to FNMA and FHLMC, are participating in the program. That group lists the biggest lenders in the country including BankAmerica, JP Morgan Chase, CitiMortgage, and Wells Fargo but the banks are still very limited in how many applications they can process at any given time.
Homeowners unfamiliar with guidelines and the lender’s interpretations of them are getting different answers from different people at the banks and requests for multiple submissions for paperwork as files are passed from one overworked processor to the next. Another impediment is that the bulk of original loans were packaged and sold to domestic and international institutional investors. The mortgages are handled by servicers that process payments, do billing, and keep records but don’t actually own the mortgage paper. This brings a third party into the negotiations that may or may not agree with the new terms of a modified loan. Congress recently passed a “safe harbor law” that gives servicers more autonomy in their loan modification approval process but whether that increases the number of completed modifications remains to be seen.

Jobs cutbacks and unemployment are now the largest single factor causing homeowners to struggle with their payments. “Employment issues started with people that worked directly in the real estate and mortgage areas, and then spread to the people that relied on business from those sectors like furniture, flooring, etc”, Mr. Feldman said, “Now, with the economy as soft as it is, unemployment is spread across the entire job market. We’re seeing home loan modification applications from all walks of life.”

Borrowers who have received foreclosure documents from lenders/servicers and those who may soon miss a mortgage payment are eligible for the Homeowner Affordability and Stability Plan. To be eligible, a borrower must live in the home, have a monthly mortgage payment larger than 31 percent of their gross income, bought their homes before January 1st 2009, and owe less than $729,750 on the mortgage. The cap of the size of the mortgage excludes many homeowners on both coasts and other affluent areas.

Under the most basic guidelines of the plan, the monthly payments of those who are approved for a modification are lowered to the 31 percent limit. Lenders can do this by reducing interest rates to as low as 2 percent, by extending the term of the loan to 40 years or by deferring principal. The plan has provisions to cover some of the homeowner’s mortgage balance in order to reach the 31% of gross income level. The plan also rewards borrowers and lenders for modifications where payments are made for twelve consecutive months.

About 100,000 homeowners across the country so far have been extended loan modification offers, according to Meg Reilly, a spokeswoman for the Treasury Department. “We are absolutely working to make things move faster and provide relief to more homeowners as soon as possible,” Ms. Reilly said. “We are encouraging servicers to staff up, establishing a hotline for homeowners, looking for new tools to expedite this process, working with communities to get the word out about resources available to homeowners.”

JP Morgan chase has 15,000 homeowners in trial modifications and Wells Fargo has enrolled approximately 3,000. A trial typically lasts 3 months and reduces a homeowner’s mortgage payments while the home loan modification is being processed. If the homeowner is late or misses a payment the loan modification process is stopped and the homeowner is immediately disqualified. There are no statistics at this point covering how many homeowners have been disqualified from the trial aspect of the modification process.

With a million foreclosure already filed through May, industry watchers agree that more needs to be done but there are additional challenges that may prevent homeowners from receiving home loan modifications. One of those challenges is an aspect of the program that allows servicers to run what is known as a net present value test, which determines whether a loan modification would be a better value for the mortgage investors than foreclosure. In places where property values have been hard hit and many people owe more than their properties are worth, servicers are more likely to opt for mortgage loan modifications because the homes would not bring in enough money in a foreclosure sale, if the homes could be sold at all.

On the other hand, the net present value test would favor foreclosure in places like New York City, where values are still high and loan amounts are much higher than other areas of the country. There, servicers might have to give more concessions in a modification to bring them in line with homeowners’ current financial picture. If homes haven’t lost as much value, on a relative basis, and there are indications that they could be sold at auction then foreclosure would provide a better return for the investors.

At issue, is that servicers are using their own criteria for the net present value tests and are not required to tell borrowers the details of how they run them and how they determine a home’s value. The calculations derived from the test put homeowners at the mercy of the investors in terms of a foreclosure decision but they have no idea on how the decision is made. The incentives provided by the program to servicers are intended, in part, to mitigate the results of the net present value tests but at the higher price ranges they don’t pay enough money to alter the outcome of the test.

According to Steve Feldman, “This is one of the areas where we add the most value for our clients”, referring to the net present value tests, “A lot of homeowners trying to do this on their own are getting bogged down and disqualified at this point in their modification. Our process gets the homeowner through the net present value test as quickly as possible.” Homeowners on the brink of foreclosure may want to consider those words before walking through the labyrinth of home loan modifications on their own.

For more information visit Feldman Law Center at www.feldmanlawcenter.com.

Resources:
Feldman Law Center: Profile – Business Exchange

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Loan Modification – Feldman Law Center

Feldman Law Center, Mission Viejo CA 92691

Feldman Law Center – The Cream Rises in Loan Modifications

Feldman Law Center – Ten Tips for a Successful Home Loan Modification

Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination

Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch

Feldman Law Center – The New York Times gets it About Half Right

Feldmanlawcenter.com – Feldman Law Center Company News

Feldman Law Center

Feldman Law Center Trulia Profile

Feldman Law Center – Why Loan Modifications Are Better Than Bankruptcies

Feldman Law Center – News by Feldman Law Center – Feldman Law Center: If you are considering bankruptcy because of the debt you owe on your house, you probably know something about filing for bankruptcy, but are still checking out the options that you have.

Chapter 7 Bankruptcy, sometimes referred to as a “straight bankruptcy,” is where your non-exempt property is sold and the cash proceeds are given to your creditors. This method of filing for bankruptcy has become more difficult recently, due to new legislation on the issue.

Chapter 13 Bankruptcy allows you to reorganize your debts – consolidating your debts and paying them off, free of interest, over a time period of three to five years. This plan prevents creditors from collecting from you during the terms of the contract, as required by Federal Courts. However, you must have a consistent source of income for this type of bankruptcy to be approved, and you must continue to pay for your monthly living expenses as well as the debts you consolidate.

Although both Chapter 7 and Chapter 13 bankruptcy can help you to get rid of some of your debts, filing for bankruptcy does cost money, and the legal battle can take time. A bankruptcy also stays on your credit report for ten years, marring your credit score, which can affect your ability to rent property or get a job, among other things. It also affects your short-term ability to get credit. In the past, bankruptcy was a popular way of dealing with mounting debts, such as too-high mortgage payments.

Bankruptcy has become an increasingly difficult legal process to complete, it may not actually get you out of your mortgage agreement, and it is a major blemish on your credit history. The attorneys of The Feldman Law Center believe that you have other options, and that you should avoid foreclosure at all costs.

If you have been making late payments on your loan, have a climbing adjustable interest rate, or have not paid interest and fees on your mortgage, one option that you should consider is a loan modification. One of our California loan modification attorneys can help you negotiate your loan agreement with your mortgage company. The attorneys at the Feldman Law Center not only know the latest regulations regarding home loan modifications, but they are able to negotiate a more favorable contract with your lender than you would be able to do on your own. Some positive changes that can result from a loan modification include a lower interest rate on your mortgage, forgiveness of some of the amount you owe, stabilization of an adjustable rate mortgage, negotiation of lower monthly payments, and more.

Not only can the above things result from enlisting the help of a home loan modification attorney, but you can also avoid the expense and time that a bankruptcy would entail. A loan modification will not adversely affect your credit report like a bankruptcy will, and you can stay in your house and retain the money that you’ve already paid towards your mortgage. An attorney at the Feldman Law Center can help you get these results more quickly than you could do on your own, and can save you the hassle of filing for bankruptcy. Contact us today for your free consultation.

About Feldman Law Center
The Feldman Law Center was founded for the purpose of negotiating mortgage loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each mortgage loan modification we negotiate on the behalf of the families we represent.

Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your mortgage loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

The people at The Feldman Law Center completely understand the stress of being behind in your monthly payments and the sleepless nights that can be brought on by an impending foreclosure. Rest assured that we will stand with you all the way through the loan modification process and that we are driven to get the best outcome possible for you and your family. If you are struggling with your monthly payments and worried about the threat of foreclosure, we can help. Call The Feldman Law Center today at 800-588-0425 or visit www.feldmanlawcenter.com.

Resources:

Feldman Law Center: Profile – Business Exchange

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Loan Modification – Feldman Law Center

Feldman Law Center, Mission Viejo CA 92691

Feldman Law Center – The Cream Rises in Loan Modifications

Feldman Law Center – Ten Tips for a Successful Home Loan Modification

Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination

Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch

Feldman Law Center – The New York Times gets it About Half Right

Feldmanlawcenter.com – Feldman Law Center Company News

Feldman Law Center

Feldman Law Center Trulia Profile

Feldman Law Center – Why Does It Seem Like Everyone is in Foreclosure?

At the Feldman Law Center, we have seen many homeowners wrestle with the difficult financial challenges facing everyone today. However, it is not just homeowners who are wrestling with difficult financial circumstances. Fortune 500 companies are declaring bankruptcy, banks are failing and even politicians are having a hard time selling their homes. One amazing occurrence that the entire financial industry is paying attention to is how many commercial foreclosures and bankruptcies there are.

For example, in the first half of 2009, the bankruptcy and debt restructuring activity among major corporations increased 329 percent! For major corporations, loan modifications are not an option, and they must handle their debts much differently. The industries facing the highest number of bankruptcies include financial services, manufacturing and industrials, real estate and consumer retail.

Other signs of financial trauma include United States Secretary of the Treasury Timothy Geithner having a hard time selling his home. It was also reported that 1,200 businesses in Rhode Island were threatened with foreclosure for not paying their taxes. That is not 100 businesses, but over 1,000 businesses could face foreclosure for allegedly not paying taxes. It seems like there is just a smaller amount of money than ever before, and everyone is trying to get what they can. State governments are fighting city governments, large corporations are fighting small businesses and the average homeowner is trying to keep their home out of the foreclosure process.

As mentioned earlier, General Motors can’t just call a loan modification attorney and try to get a loan modification for all of their manufacturing plants. However, a homeowner can do just that, and save himself or herself the pain and embarrassment of a foreclosure. A mortgage loan modification is an agreement between the borrower and the lender to renegotiate the terms of a home mortgage loan. A home loan modification could change the interest rate, eliminate late fees and penalties, adjust the length of the loan and much more.

Another major asset in the loan modification process is a loan modification attorney. A loan modification attorney can offer a specialized skill which is incredibly valuable to anyone looking for a great loan modification. A loan modification can provide excellent advice and counsel, as well as a particular skill in negotiating a home loan modification. Negotiating with lenders can be trick, and even in a difficult financial time like we are in now, banks and mortgages companies do not want to give up too much. Banks will take advantage of every situation they can, but with a California loan modification attorney on your side, you can have a highly trained professional representing you.

If you are in a difficult financial circumstance, you can comfort yourself with the knowledge that you do not have the debt problems that a large corporation has and you have many more options as well. A loan modification attorney can help you get the best mortgage loan modification possible and help you stay in your home for the long term.

Visit Feldman Law Center at http://www.feldmanlawcenter.com or call 800-588-0425.

About Feldman Law Center
The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop or avoid foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent.

Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

The people at The Feldman Law Center completely understand the stress of being behind in your monthly payments and the sleepless nights that can be brought on by an impending foreclosure. Rest assured that we will stand with you all the way through the loan modification process and that we are driven to get the best outcome possible for you and your family. If you are struggling with your monthly payments and worried about the threat of foreclosure, we can help. Call The Feldman Law Center today at 800-588-0425.

Resources:
Feldman Law Center: Profile – Business Exchange

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Loan Modification – Feldman Law Center

Feldman Law Center, Mission Viejo CA 92691

Feldman Law Center – The Cream Rises in Loan Modifications

Feldman Law Center – Ten Tips for a Successful Home Loan Modification

Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination

Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch

Feldman Law Center – The New York Times gets it About Half Right

Feldmanlawcenter.com – Feldman Law Center Company News

Feldman Law Center

Feldman Law Center Trulia Profile

Feldman Law Center – Loan Modifications Ramped Up by Government

Feldman Law Center – News by Feldman Law Center — The world of loan modifications is ever changing, and proof positive is the federal government’s ever-expanding role in influencing banks to offer loan modifications. It was recently reported that the government is frustrated with the progress of their federal loan modification program, and are trying to influence major banks to increase the number of loan modifications for homeowners. Of course, increasing the number of mortgage loan modifications means relaxing the standards which they are currently using to allow for loan modifications.

Banks such as Bank of America, Citigroup, J.P. Morgan Chase and Wells Fargo were all summoned to a meeting in Washington, D.C. to discuss ways to improve the federal loan modification program, which was announced in February 2009. The Obama Administration put a great deal of effort and hope into the program, but it has not yet produced the kinds of results people thought it would. The administration’s goal is to complete 500,000 trial home loan modifications, although some analysts fear this is far too optimistic. The government has discussed ways to expand the program, including ways to simultaneously modify mortgages and home equity loans. When President Obama took office earlier this year, the number of foreclosures was sky rocketing due in large part to the subprime mortgage crisis and the adjustable rate mortgages (ARMs) which were offered so rampantly. As a result, millions of Americans were losing their homes and the government felt it needed to intervene.

While the level of government involvement is new, loan modifications, are nothing new. California loan modification attorneys have been helping people stay in their homes for years, by helping them get home loan modifications without government interference. Millions of people throughout California have used California loan modification attorneys for their California home loan modifications because attorneys carry a special place in our current culture. When a loan modification attorney calls a bank or lender, they get a much quicker response because they have the law on their side. When people try to handle loan modifications on their own, they usually do not know what they are doing exactly and can make many mistakes as a result.

The recent government programs have helped a few people, but since the banks all have huge bureaucracies and the federal government is one giant bureaucracy, people often get lost in process. Trying to call the federal loan modification program hotline can cause major headaches, and trying to get one huge bureaucracy to call another huge bureaucracy can take months and months. While it is encouraging that the federal government is trying to help the average homeowner, a loan modification attorney can get better results in less time.

A loan modification can help adjust a number of mortgage terms to lower your monthly mortgage payment, thus allowing you an affordable payment you can pay consistently. California loan modification attorneys, such as those at the Feldman Law Center, have years of experience in helping people avoid foreclosure and stay in their homes. Our loan modification attorney team is highly skilled in helping California homeowners in avoiding foreclosure, avoiding bankruptcy, avoiding a short sale and avoiding the “just walk away” option.

Visit us at http://www.feldmanlawcenter.com or call 800-588-0425.

About Feldman Law Center
The Feldman Law Center was founded for the purpose of negotiating loan modifications on behalf of their clients. These negotiations have two major goals; to reduce monthly mortgage payments to a level of affordability for the homeowner and to either stop foreclosure proceedings. The mission at The Feldman Law Center is to provide the highest level of professional service while delivering the best possible result on each loan modification we negotiate on the behalf of the families we represent.

Having negotiated over 500 attorney driven loan modifications, we realize that each homeowner’s situation is unique and that each modification may require a different approach than the one before it. To that end, we can always call on our 25 years of negotiating, knowledge, and real estate experience to provide the most optimal solutions for each family’s situation. While we are negotiating your loan modification with your lenders our friendly and compassionate team will keep you updated all the way on how the process is advancing.

The people at The Feldman Law Center completely understand the stress of being behind in your monthly payments and the sleepless nights that can be brought on by an impending foreclosure. Rest assured that we will stand with you all the way through the loan modification process and that we are driven to get the best outcome possible for you and your family. If you are struggling with your monthly payments and worried about the threat of foreclosure, we can help. Call The Feldman Law Center today at 800-588-0425 or visit www.feldmanlawcenter.com.

Resources:
Feldman Law Center: Profile – Business Exchange

Press Release – The Feldman Law Center’s Code of Ethics and Practices

Loan Modification – Feldman Law Center

Feldman Law Center, Mission Viejo CA 92691

Feldman Law Center – The Cream Rises in Loan Modifications

Feldman Law Center – Ten Tips for a Successful Home Loan Modification

Feldman Law Center – Saving Thousands with a Loan Modification – Debt Settlement Combination

Feldman Law Center – Mission Viejo, CA, 92891 – Citysearch

Feldman Law Center – The New York Times gets it About Half Right

Feldmanlawcenter.com – Feldman Law Center Company News

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Feldman Law Center Trulia Profile